The CEO of the parent company of Stelco in the U.S. stated that they would defend themselves if Ottawa takes legal action following the decision to halt production at a steel mill in Hamilton, resulting in potential layoffs of up to 500 employees due to the ongoing trade disputes between Canada and the U.S.
This response came after Prime Minister Mark Carney mentioned that Ottawa would utilize all available legal means against Cleveland-Cliffs and pursue them to the fullest extent. Cleveland-Cliffs CEO Lourenco Goncalves, in an interview with CBC News, emphasized that the ability for Stelco to freely sell steel produced in Hamilton to U.S. buyers was a fundamental condition agreed upon during the company’s acquisition in 2024, which included sustaining significant employment levels and operations in the city. Goncalves pointed out that the Canada-U.S.-Mexico Agreement (CUSMA) was already in effect at the time of the acquisition.
Goncalves indicated that the ability to sell into the U.S. market was a crucial factor in acquiring Stelco and expressed regret over the trade tensions between the two countries. Despite the existing trade war, CUSMA remains in place until 2036, although talks on its renewal were halted by the U.S. in July.
Regarding the layoffs at Stelco, the company directly attributed its decision to potentially cut 500 jobs to the trade conflict initiated by U.S. President Donald Trump, who imposed significant tariffs on foreign steel last year, leading to retaliatory measures by Canada. Carney highlighted Goncalves for supporting Trump’s tariff implementation on Canadian steel imports, although Goncalves defended his stance by emphasizing his commitment to Canadian steelworkers and the country’s workforce.
Cleveland-Cliffs acquired Stelco in a multi-billion dollar deal with a focus on national interests and acknowledging the importance of the workforce. Goncalves explained that the influx of foreign steel imports had strained the market for Stelco’s cold-rolled steel production, necessitating a shift towards concentrating on hot-rolled products due to market pressures.
Goncalves clarified that the issue was not the lack of financial resources but rather the uncertainty surrounding Canada-U.S. trade relations. Carney mentioned the availability of financial aid to mitigate the trade war’s impact on companies like Stelco, but Goncalves stressed that resolving the trade uncertainty was more critical than financial assistance.